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Unformatted text preview: (2) Used goods (3) Imports (4) Rent iii) Excludes (1) Stocks ECON202 Class Notes April 17, 2008 Lecture 8 (a) Form of savings (not considered investment in ECON) (i) Investment is always done by firms e) From price index to inflation rate i) Inflation rate (1) Measures how fast the price level is changing (a) Percentage change in the price level from one period to the next ii) Deflation (1) A decrease in the price level from one period to the next (a) No reason to loan money (i) FISHER EFFECT? f) How is CPI used i) Target policy ii) To index payments (social security) iii) Contract indexation iv)...
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- Spring '09